Cash Advance: The Dos and Don’ts of Getting a Payday Loan

Every day, hard-working men and women face emergencies that put them in difficult financial straits. Sometimes people are forced to make the difficult decision between heating or eating, and worse. For many, there are very few ways to find relief. In recent years, cash advance companies have become a popular option. While a payday loan is often a viable short-term solution, there are things to understand about the process before going down that route. This article will reveal some basic dos and don’ts that will help you steer clear of the traps that some of the unscrupulous companies set up to inadvertently fall for you.

• Make corresponding Budget: We should all try to do this. Some are better at this than others. When you apply for a payday loan, budgeting becomes even more important. The first is the first. You will need to know how much money you really need. Know how you will spend the amount you borrow; And if you don’t need it, don’t borrow it. You’ll also want to make sure you budget for when that cash advance payment is due. Make sure that making that payment doesn’t put you in more danger than you already are.
• Read the fine print: Legally, every company you get a cash advance from must give you full details about your loan. Due dates, interest rates, and any other fees – all of these must be specifically described in the payday loan documentation. Less savvy companies will try to hide fees and sometimes even specific loan details that can make paying off the debt more difficult just so they can make more money. So before you sign anything, make sure you read and understand your disclosure agreement.
• Pay on time: Make sure you have the money in your account when it’s time to pay off your cash advance, especially if it’s an online payday loan option. Local stores can often help you find a way to extend your loan due date, but some cash advance companies simply don’t offer this. If the money isn’t there when it’s due, you risk incurring insufficient funds charges from both the cash advance company and your bank. Also, bringing your current payday loan can sometimes be a hassle and the process with some companies can result in even more fees.
• Don’t go with your first find: There are literally hundreds of cash advance companies out there. You may not always go with the first one you find. Do some research and try to find information about the company you are investigating. Review your fee structure and the terms of your payday loans. Make sure they will be able to meet your needs.
• Do not lie: Cash advance companies will almost always verify the information you provide. If you lie on your payday loan application and they find out (which they usually will), you won’t be able to get the funds you need and will likely flag you in their system, preventing you from making future transactions. Submitting false information may also prevent you from getting a payday loan from any cash advance company the former is affiliated with.
• Don’t Take Out Too Much: You may need $200 to get by, but you are given the option to borrow up to $500. Don’t take the entire $500 cash advance. As tempting as it may be, you should only borrow what you need. The larger cash advance comes with a higher loan fee, so you don’t want to stretch yourself too thin by creating a payment that you really can’t afford. Remember, you will have to repay the loan amount, plus the fee, on your next payment date.